RNS Number:1614S
Merrill Lynch New Energy Tech. PLC 
17 November 2003

MERRILL LYNCH NEW ENERGY TECHNOLOGY plc

All information is at 31 October 2003 and unaudited

Performance at month end with net income reinvested

                                                 One          Three              Six               One            Since
                                               Month         Months           Months              Year           Launch*

Net asset value                                 8.1%          26.2%            48.6%             22.5%            -72.4%
Share price                                     8.1%          43.1%            60.3%             50.0%            -76.8%
*23 October 2000

Source: Merrill Lynch Investment Managers

At month end

Net asset value:                                             26.43p
Share price:                                                 23.25p
Discount to NAV:                                             12.03%
Net yield:                                                      N/A
Total assets:                                                #53.2m
Gearing:                                                        Nil
Ordinary shares in issue:                               198,950,000



Sector                                                % Total  Country                                        % Total
Analysis                                               Assets  Analysis                                        Assets

Auto & On-Site Generation                                41.0  USA                                               49.7
Enabling Energy Technology                               23.5  Canada                                            27.6
Renewable Energy                                         21.7  Denmark                                            6.2
Energy Storage                                           11.3  Spain                                              5.0
Cash                                                      2.7  Germany                                            4.4
Net Current Liabilities                                  (0.2) United Kingdom                                     3.6
                                                               Australia                                          1.0
                                                               Cash                                               2.7
                                                               Net Current Liabilities                           (0.2)
                                                        -----                                                   -----
                                                        100.0                                                   100.0
                                                        =====                                                   =====




Ten Largest Equity Investments
Company                                      % of Investments        Country of Risk

Hydrogenics                                              6.4         Canada
Fuelcell Energy                                          6.0         USA
Active Power                                             5.9         USA
American Superconductor                                  5.8         USA
Ballard Power                                            5.6         Canada
Intermagnetics                                           5.4         USA
Gamesa                                                   5.0         Spain
Vestas Wind                                              4.6         Denmark
Quantum Fuel Systems                                     4.3         USA
Plug Power                                               3.6         USA
                                                        ----
Total                                                   52.6
                                                        ====



Robin Batchelor and Poppy Buxton, representing the Investment Manager, noted:

Performance Review

During the month under review, the Trust continued to benefit from positive
momentum in the sector. The net asset value per share ("NAV") increased by 8.1%
to 26.43p while the share price increased by 8.1% to 23.25p. The period was
characterised by strong share price performance across our North American
holdings driven by ongoing interest in back-up power solutions and electricity
grid enhancing technologies.



We undertook two visits to the US and one to Iceland during October. Early in
the month we attended the Ardour Capital energy technology conference, the first
sector specific finance conference for several years. We also took the
opportunity to visit several manufacturing facilities and were pleased to note
further progress. Later in the month we attended the 2003 Fuel Cell seminar in
Florida, a gathering of manufacturers and suppliers to the industry. What became
evident at the conference is that the fuel cell sector is progressing
significantly in areas beyond the more public stationary and automotive
applications. For instance, in the next two years manufacturers expect the
commercial introduction of micro fuel cells for mobile phones and PDAs. Such
fuel cells will be relatively affordable at roughly US$25-35 (retail price) and
consequently, according to distributors and other equipment manufacturers,
should appeal to consumers.



We have also seen companies that are indirectly involved in fuel cells make
significant strides. One example is Stuart Energy. Stuart's products generate
hydrogen on site and on demand by electrolysing water. It was previously
envisaged that such systems would be used for traditional industrial
applications and to refuel fuel cell powered cars (indeed the company has
successfully installed over 1000 units worldwide for these two markets). More
recently the company has combined its unit with a Ford engine to provide a '
hydrogen energy station' capable of providing up to 15MW of power. Such units
appear to be gaining interest from utilities as they allow them to use spare
electricity to generate hydrogen and avoid expensive electricity 'dumping' when
power supply exceeds demand.



At the end of the month we, together with Roland Clift (MLNET Director and
Professor of Environmental Strategy, University of Surrey), undertook a research
visit to Iceland. Three Ballard Power fuel cell powered buses are now operating
in mainstream public use in Reykjavik, fuelled by hydrogen produced from
electrolysis of water using hydropower and geothermal energy. Iceland is part of
a wider programme incorporating thirty 'Ballard' powered buses across ten
European cities. During the month, Ballard Power reported quarterly results
ahead of expectations with reduced cash burn.


During the month several companies reported third quarter results. Of note were
Active Power CEO's comments "We are encouraged by the increased demand for our
products. Sales activity has been growing for the last few quarters and we are
now beginning to see the conversion of this interest into orders. Solid product
performance, an expanded product line, additional channels to market and several
high profile power outages are all contributing to this pick up in demand".
Revenue of US$3 million rose 60% quarter on quarter and 37% year on year with
net income of (US$5.6m) vs. (US$6.5m) year on year.



Portfolio Activity

We adjusted positions in several holdings following the completion of our
research trips during the month. We increased positions in Mechanical
Technologies, Medis Technologies, American Superconductor, Active Power and
Quantum Fuel Systems. We reduced FuelCell Energy due to portfolio concentration
post their equity acquisition of Global Thermoelectric (an existing holding) and
exited our remaining holding in Energy Conversion Devices.



Outlook

We continue to see evidence that the "catch-up" infrastructure investment
required following the recent electricity blackouts has begun, to the benefit of
our superconducting and stationary fuel cell holdings.



When 'fuel cells' are mentioned, most people think of the high profile vehicle
demonstrations and programs. These programs appear to be successful and
certainly we were very impressed by the Ballard bus we saw in Iceland. However,
it is also encouraging to witness progress across a broad spectrum of fuel cell
technologies and applications.



We believe that renewed interest in the sector will benefit share prices and may
well accelerate the progression of the industry.





Latest information is available by typing www.mlim.co.uk/its on the internet,
"MNE.L" on Reuters, "MNE LN" on Bloomberg or "8800" on Topic 3 (ICV terminal).



17 November 2003






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